It is very important to know your costs. Most organizations get TCO calculations but they don’t know what the TCO of the indivual App is because central IT had cut a big fat check earlier in the past. In order to do real TCO analysis of App-level, you have to know that there are costs of Power, cooling, real estate system administration costs in case of on-premise data center and co-lo which is not in that of the cloud. I am even taking into account the value of “Headache” and cost of this undifferentiated heavy lifting. When you use AWS, all these costs are already baked in to your costs. You really don’t have to worry about all these costs. The other very important item that customers miss is Reserved Instances when doing long-term TCO calculations. Reserved instances can save you upto 50% for a 3-year term. Its our commitment to you and not your commitment to us. Andy took this into two things into consideration : know what he is currently paying for the app and understanding the reserved instance pricing

Perhaps you expect a lot of traffic as part of a planned announcement and you want to increase the size of your EC2 fleet just ahead of your press release. Maybe your site is busy once a day because you have a daily deal or a daily special, or only on weekends when people are at sporting events. Or maybe you run a college registration site and you want to scale up during day and evening hours for the four-day registration period.

Overall, the organizations interviewed recognized annual financial benefits averaging over $518,000 per application. The most significant benefit comes from moving applications onto AWS infrastructure due to lower capital and operational costs. This reduction in capex and opex accounted for over 50% of the overall benefits found in the study. IDC observed significantly increased developer productivity on Amazon cloud infrastructure services compared with prior implementations. The companies interviewed experienced greater developer productivity across all of the key software development life-cycle activities, which was a direct result of the extensive development and runtime services that are provided by Amazon cloud infrastructure services. Developer and IT staff productivity accounted for nearly 30% of overall financial benefits. The remaining benefits were driven by the flexibility and agility of Amazon cloud infrastructure services, which make it easier to trial new business models, support revenue-generating applications, and provide more reliable services to end users. These other benefits included:Benefits increase over time. There is a definite correlation between the length of time customers have been using Amazon cloud services infrastructure and their returns. At 36 months, the organizations are realizing $3.50 in benefits for every $1.00 invested in AWS; at 60 months, they are realizing $8.40 for every $1.00 invested. This relationship between length of time using Amazon cloud infrastructure services and the customers&apos; accelerating returns is due to customers leveraging the more optimized environment to generate more applications along a learning curve. The five-year total cost of ownership (TCO) of developing, deploying, and managing critical applications in Amazon cloud infrastructure represents a 70% savings compared with deploying the same resources on-premise or in hosted environments. The findings showed a 626% ROI over five years.End users benefited from fewer service disruptions and quicker recovery on Amazon cloud infrastructure services, reducing downtime by 72% and improving application availability by an average of 3.9 hours per user per year.IT staff productivity increased by 52%. IT staff are thus able to improve support of mission-critical operations. Amazon cloud infrastructure services had significant impact on application development and deployment, reducing overall developer hours by 80%.The five-year ROI analysis shows that on average, the companies saw a payback period of seven months and realized a five-year ROI of 626%.

Overall, the organizations interviewed recognized annual financial benefits averaging over $518,000 per application. The most significant benefit comes from moving applications onto AWS infrastructure due to lower capital and operational costs. This reduction in capex and opex accounted for over 50% of the overall benefits found in the study. IDC observed significantly increased developer productivity on Amazon cloud infrastructure services compared with prior implementations. The companies interviewed experienced greater developer productivity across all of the key software development life-cycle activities, which was a direct result of the extensive development and runtime services that are provided by Amazon cloud infrastructure services. Developer and IT staff productivity accounted for nearly 30% of overall financial benefits. The remaining benefits were driven by the flexibility and agility of Amazon cloud infrastructure services, which make it easier to trial new business models, support revenue-generating applications, and provide more reliable services to end users. These other benefits included:Benefits increase over time. There is a definite correlation between the length of time customers have been using Amazon cloud services infrastructure and their returns. At 36 months, the organizations are realizing $3.50 in benefits for every $1.00 invested in AWS; at 60 months, they are realizing $8.40 for every $1.00 invested. This relationship between length of time using Amazon cloud infrastructure services and the customers&apos; accelerating returns is due to customers leveraging the more optimized environment to generate more applications along a learning curve. The five-year total cost of ownership (TCO) of developing, deploying, and managing critical applications in Amazon cloud infrastructure represents a 70% savings compared with deploying the same resources on-premise or in hosted environments. The findings showed a 626% ROI over five years.End users benefited from fewer service disruptions and quicker recovery on Amazon cloud infrastructure services, reducing downtime by 72% and improving application availability by an average of 3.9 hours per user per year.IT staff productivity increased by 52%. IT staff are thus able to improve support of mission-critical operations. Amazon cloud infrastructure services had significant impact on application development and deployment, reducing overall developer hours by 80%.The five-year ROI analysis shows that on average, the companies saw a payback period of seven months and realized a five-year ROI of 626%.

Overall, the organizations interviewed recognized annual financial benefits averaging over $518,000 per application. The most significant benefit comes from moving applications onto AWS infrastructure due to lower capital and operational costs. This reduction in capex and opex accounted for over 50% of the overall benefits found in the study. IDC observed significantly increased developer productivity on Amazon cloud infrastructure services compared with prior implementations. The companies interviewed experienced greater developer productivity across all of the key software development life-cycle activities, which was a direct result of the extensive development and runtime services that are provided by Amazon cloud infrastructure services. Developer and IT staff productivity accounted for nearly 30% of overall financial benefits. The remaining benefits were driven by the flexibility and agility of Amazon cloud infrastructure services, which make it easier to trial new business models, support revenue-generating applications, and provide more reliable services to end users. These other benefits included:Benefits increase over time. There is a definite correlation between the length of time customers have been using Amazon cloud services infrastructure and their returns. At 36 months, the organizations are realizing $3.50 in benefits for every $1.00 invested in AWS; at 60 months, they are realizing $8.40 for every $1.00 invested. This relationship between length of time using Amazon cloud infrastructure services and the customers&apos; accelerating returns is due to customers leveraging the more optimized environment to generate more applications along a learning curve. The five-year total cost of ownership (TCO) of developing, deploying, and managing critical applications in Amazon cloud infrastructure represents a 70% savings compared with deploying the same resources on-premise or in hosted environments. The findings showed a 626% ROI over five years.End users benefited from fewer service disruptions and quicker recovery on Amazon cloud infrastructure services, reducing downtime by 72% and improving application availability by an average of 3.9 hours per user per year.IT staff productivity increased by 52%. IT staff are thus able to improve support of mission-critical operations. Amazon cloud infrastructure services had significant impact on application development and deployment, reducing overall developer hours by 80%.The five-year ROI analysis shows that on average, the companies saw a payback period of seven months and realized a five-year ROI of 626%.

To get 1 PB of actual application storage, you actually need to account for 1.820133 PB of storage.

To get 1 PB of actual application storage, you actually need to account for 1.820133 PB of storage.

The best study so far!

The best study so far!

The best study so far!

23% price reduction

Overall, the organizations interviewed recognized annual financial benefits averaging over $518,000 per application. The most significant benefit comes from moving applications onto AWS infrastructure due to lower capital and operational costs. This reduction in capex and opex accounted for over 50% of the overall benefits found in the study. IDC observed significantly increased developer productivity on Amazon cloud infrastructure services compared with prior implementations. The companies interviewed experienced greater developer productivity across all of the key software development life-cycle activities, which was a direct result of the extensive development and runtime services that are provided by Amazon cloud infrastructure services. Developer and IT staff productivity accounted for nearly 30% of overall financial benefits. The remaining benefits were driven by the flexibility and agility of Amazon cloud infrastructure services, which make it easier to trial new business models, support revenue-generating applications, and provide more reliable services to end users. These other benefits included:Benefits increase over time. There is a definite correlation between the length of time customers have been using Amazon cloud services infrastructure and their returns. At 36 months, the organizations are realizing $3.50 in benefits for every $1.00 invested in AWS; at 60 months, they are realizing $8.40 for every $1.00 invested. This relationship between length of time using Amazon cloud infrastructure services and the customers&apos; accelerating returns is due to customers leveraging the more optimized environment to generate more applications along a learning curve. The five-year total cost of ownership (TCO) of developing, deploying, and managing critical applications in Amazon cloud infrastructure represents a 70% savings compared with deploying the same resources on-premise or in hosted environments. The findings showed a 626% ROI over five years.End users benefited from fewer service disruptions and quicker recovery on Amazon cloud infrastructure services, reducing downtime by 72% and improving application availability by an average of 3.9 hours per user per year.IT staff productivity increased by 52%. IT staff are thus able to improve support of mission-critical operations. Amazon cloud infrastructure services had significant impact on application development and deployment, reducing overall developer hours by 80%.The five-year ROI analysis shows that on average, the companies saw a payback period of seven months and realized a five-year ROI of 626%.

Transcript of "KGC 2013 AWS session "

2.
Top 4 TCO (Total Cost of Ownership) Questions
1. “My total cost of hardware is cheaper than AWS”
2. “Will AWS be expensive in a long run?”
3. “Cloud is not cost-effective for steady state
workloads”
4. “My administration costs are insignificant”

3.
Make sure that
we are including
all the cost
factors into
consideration
Place
Power
Pipes
People
Patterns

10.
Auto scaling : Types of Scaling
Scaling by Schedule
• Use Scheduled Actions in Auto Scaling Service
• Date
• Time
• Min and Max of Auto Scaling Group Size
• You can create up to 125 actions, scheduled up to 31 days into the future, for each of your auto
scaling groups. This gives you the ability to scale up to four times a day for a month.
Scaling by Policy
• Scaling up Policy - Double the group size
• Scaling down Policy - Decrement by 1
Scale By Hand
• Not so auto, but still better than nothing!

15.
On-Demand
Pay for compute
capacity by the hour
with no long-term
commitments
For spiky
workloads, zero
upfront
Reserved
Make a low, one-
time payment and
receive a significant
discount on the
hourly charge
For committed
workloads
Spot
Bid for unused
capacity, charged at
a Spot Price which
fluctuates based on
supply and demand
For transient
workloads
Dedicated
Launch instances
within Amazon VPC
that run on
hardware dedicated
to a single customer
For highly sensitive
or compliance-
related workloads
Free Tier
Get Started on AWS
with free usage &
no commitment
For POCs and
getting started
$
AWS Offers Options that Fit the Needs

19.
AWS customers use Spot for even greater savings
Best Spot use-cases include any batch-oriented, fault-tolerant application

20.
What are Spot Instances?
Availability Zone
Region
Availability Zone
Unused
Unused
Unused
Unused
Unused
Unused
Sold at
50%
Discount!
Sold at
56%
Discount!
Sold at
66%
Discount!
Sold at
59%
Discount!
Sold at
54%
Discount!
Sold at
63%
Discount!

36.
Intangible Cost Savings – Take a closer look at what you get
Standardization and
Consistency of
HW/SW
Global Footprint
and Expansion
Automation and
Operational
Excellence
Rate of
Innovation
Security and ComplianceReturn on Agility